Richmond life sciences company Aditxt Inc. (NASDAQ: ADTX) is acquiring San Diego's Evofem Biosciences Inc. (NASDAQ: EVFM), the maker of female contraceptive gel Phexxi, in a stock and debt deal valued at roughly $100 million.
The agreement was announced in late December. Under its terms, Aditxt assumed senior secured debt of the women’s health company and was to pay $5 million to Evofem’s senior debtholder by the end of 2023. It is additionally expected to make a $8 million payment by September and then another subsequent $5 million payment. Aditxt has also agreed to provide a $3 million loan to Evofem to cover its legal costs related to the deal.
The transaction is expected to close in the first half of the year. Upon its closing, Evofem will become a subsidiary of Aditxt, with CEO Saundra Pelletier continuing to lead the operation.
“We believe this transaction is in the best interests of our shareholders and are confident that they and the women we serve will benefit from our expanded offering and stronger voice,” Pelletier said in a statement.
The deal follows a strategic review from Evofem announced in February to consider options like a sale, merger or licensing deals. The company posted $13.4 million in Phexxi sales through the first nine months of 2023.
Aditxt said the deal will establish “a women’s health mission” within its platform. Its portfolio already includes Adimune Inc., which works in immunotherapy for things like organ transplants, autoimmune disorders and allergies, and Pearsanta Inc., a personalized lab testing company.